Dolcin Corp. v. Reader's Digest Ass'n

7 A.D.2d 449, 183 N.Y.S.2d 342, 1959 N.Y. App. Div. LEXIS 9548
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 17, 1959
StatusPublished
Cited by6 cases

This text of 7 A.D.2d 449 (Dolcin Corp. v. Reader's Digest Ass'n) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dolcin Corp. v. Reader's Digest Ass'n, 7 A.D.2d 449, 183 N.Y.S.2d 342, 1959 N.Y. App. Div. LEXIS 9548 (N.Y. Ct. App. 1959).

Opinion

Breitel, J.

Plaintiff is a corporation manufacturing and distributing a chemical compound purportedly useful in the [451]*451treatment of arthritis, and advertised as such. It sues defendant, the publisher of a well-known magazine, for damages arising from publication of an allegedly libelous article concerning it and its product. After a trial, a jury rendered a verdict in favor of defendant. Plaintiff appeals, asserting errors by the court in the admission and exclusion of evidence.

Despite much discussion of refinements stemming from the ‘ rolled-up plea ’ ’ of justification and fair comment interposed by defendant, there are but two significant issues in the appeal. The first is whether a responsible publisher may assert in its article the baselessness of claims by the drug manufacturer concerning its product and rest those assertions upon widespread medical opinion in this country as establishing the truth of the facts. The second significant issue is whether the proceedings before the Federal Trade Commission, in which the drug’s advertising was condemned as deceptive, are admissible to establish the truth of the facts necessary to support the fair comment upon which defendant relies. The trial court decided both issues in favor of defendant. Neither ruling is correct, and, as a consequence, the judgment in favor of defendant must be reversed and a new trial granted.

Plaintiff’s drug is called “ Dolcin ”, from which the corporation derives its name. It is composed of acetylsalicylie acid, commonly called aspirin ”, and calcium succinate. A similar compound is manufactured and distributed by others under different brand names, although some may also add one or more inert or nutritive substances. A like product under a different brand name is manufactured and distributed in England.

Plaintiff conducts extensive advertising through various media, stressing, in extravagant terms, the beneficial effect of the drug for persons suffering from arthritis. Significant in. the whole picture is the fact that arthritis is a progressive, painful, and even crippling, ailment for which medical science has not so far produced a specific cure.

Most treatment for arthritis is ameliorative or analgesic. As a consequence, ordinary aspirin is commonly used by arthritics. Concededly, however, and especially for some persons, the intake of large quantities of aspirin produces collateral harmful effects. The medical issue tendered with regard to the use of the aspirin-succinate compound is whether the compound is no better than the aspirin in it, or whether the combination permits use of large doses of the drug without the side effects of aspirin used alone.

The allegedly libelous article was entitled Those Million-Dollar Aspirins ”, Its purport was that a number of drug [452]*452manufacturers, using high-powered advertising, were selling huge quantities of drugs containing aspirin and succinate to victims of arthritis. Dolcin is one of the drugs mentioned by name. Prices at which they were sold were allegedly grossly excessive and the article concluded with the sentence ‘ ‘ Who wants to pay $15 for 58 cents’ worth of aspirin? ”. The article retailed medical opinion in this country to the effect that these drugs were worthless, and even harmful, to the extent that they encourage arthritics to overdose themselves with aspirin, thus incurring the serious side effects to which reference was earlier made. After referring to the opinion of doctors and medical authorities, it is stated that ‘ ‘ Hence the only value of these ‘ wonder drugs ’ is as simple pain killers, They are no more effective than common aspirin ”. It is also stated that ‘ Phoniest, and perhaps most dangerous, of all the claims made for these products is that they are ‘ safe ’ and ‘ nontoxic ’ ”. The article then recites the difficulties with the Federal regulating authorities had by a number of these manufacturers, including plaintiff, and how the manufacturers, by various devices, can delay the proceedings, avoid serious penalties, or shift from one form of the drug to another, in order to evade the administrative determinations. The article refers to sensational and unscrupulous advertising by the drug manufacturers.

There are many other things in the article which reflect adversely on the manufacturers of these drugs. What has been selected for repetition from the article are some which suggest: 1) as a fact that the drugs are worthless or harmful; and 2) that the makers and distributors of such drugs are knowingly practicing a fraud on the public. The first relates to the underlying facts which must be true in order for one to avail himself of the defense of fair comment in this libel action; the other relates to the allegedly libelous impact of the article.

Defendant’s theory of the rolled-up defense of truth and fair comment, adopted by the trial court, was that the defense was made out if it had shown: 1) that expert medical opinion held that the drug Dolcin was useless, and even harmful, to its users; and 2) that the published article did no more than repeat this expert medical opinion and then draw the inferences, by way of the writer’s opinion, as to the deceitful and virtually fraudulent activities of plaintiff. Thus, it was argued that whether Dolcin was a useless or harmful drug was irrelevant, so long as defendant was not attempting to make out the defense of justification or truth. All that defendant had to show was that it correctly reported widespread or universal [453]*453medical opinion with regard to the uselessness or harmfulness of Dolcin.

Plaintiff, on the other hand, argued that there is no such defense available. It stressed that fair comment is available only when the facts are truly stated and that the privilege extends only to the libelous inferences which have been drawn and expressed, provided those inferences have some reasonable or possible connection with the facts as stated. It also argued that medical opinion did not, in the context of libel law, constitute such facts which would support a defense of fair comment or a “ rolled-up plea ” of justification and fair comment.

In pursuance of its view, plaintiff offered the depositions of five British physicians, supposedly of standing in their country, to the effect that aspirin-succinate drugs were beneficial to arthritics and, even in some cases, curative. The basis for the British medical opinion was that,the addition of the succinate to the aspirin made the user tolerant to the aspirin dosage so that the side effects of heavy doses of aspirin did not occur in most cases. This proof was rejected on defendant’s argument that whether Dolcin was a useful drug, or a useless or a harmful one, was not an issue in the case. Thus, plaintiff was barred from showing that its product was a good product.

Defendant also offered proof of the proceedings before the Federal Trade Commission in which Dolcin was found to be a useless or a harmful drug and in which the advertising by plaintiff in the sale and distribution of Dolcin was condemned as misleading and deceptive. Similarly, proof of contempt convictions against plaintiff and its officers in connection with violations of enforcement orders following the determination of the Federal Trade Commission were also received in evidence. Notably, in offering this proof defendant claimed, and still urges, that these proceedings were not offered to prove the truth or rightness of the findings, namely, the fact that Dolcin was a useless or harmful drug, but to prove widespread opinion to that effect.

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Bluebook (online)
7 A.D.2d 449, 183 N.Y.S.2d 342, 1959 N.Y. App. Div. LEXIS 9548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolcin-corp-v-readers-digest-assn-nyappdiv-1959.